Inflation Drives The ‘Great Rotation’
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Strong economic growth and inflation are consistently driving the “great rotation” from growth stocks to cyclical stocks. Were it not for historically low Treasury yields, which make stocks attractive by comparison, the S&P 500 stock index’s overvaluation would be problematic. As vaccination levels rise toward herd immunity, economic activity is rapidly recovering. Vaccinations in the United States should approach 70% and drive the US and the global economic…
